Dubai, United Arab Emirates, 13th May 2018: ENBD REIT (CEIC) Limited ("ENBD REIT"), the Shari'a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced its audited financial results for the year ended 31st March 2018, prepared in accordance with International Financial Reporting Standards ("IFRS") and audited by KPMG. ENBD REIT is listed on Nasdaq Dubai under ticker symbol 'ENBDREIT'. As at 31st March 2018, ENBD REIT's Net Asset Value ("NAV") was USD 300 million or USD 1.18 per share. The total value of its property portfolio was USD 463 million, increasing by USD 3 million on the previous quarter and by USD 147 million on the previous year. ENBD REIT’s total loans stood at USD 168 million at a Loan-to-Value ("LTV") ratio of 36%, compared with an LTV of 28% in 2017.
In February, ENBD REIT announced the realignment of its dividend calendar, to coincide with its financial year-end on 31st March. In addition to the dividend of USD 0.0382 per share paid to the shareholders on 12th July 2017, the directors have proposed a further dividend payment of USD 3,281,777 or USD 0.0129 per share. The dividend will be distributed to shareholders on 13th June 2018, subject to shareholder approval at the Annual General Meeting ("AGM"), which will be held on 3rd June 2018. This brings the total dividend payable to shareholders for the year ending 31st March 2018 to USD 0.0511 per share - equivalent to 5.16% of the share price and 4.33% of the cum-dividend NAV. Following the AGM, the shares will trade ex-dividend on 4th June 2018, with the record date being set as 5th June 2018. Thereafter, it is ENBD REIT’s intention to continue to distribute dividends to shareholders on a semi-annual basis, following full-year (31st March) and half-year (30th September) financial results.
ENBD REIT also announced a proposed return of capital to shareholders, by way of a cash payment, subject to approval by shareholders at the AGM. Following the dividend calendar realignment the return of capital to shareholders will enable ENBD REIT to pay an amount to investors for the year ending 31st March 2018 that is consistent with similar payments made to shareholders in prior periods. Once the cash payment has been effected, the issued share capital of ENBD REIT will be reduced from USD 297 million to USD 288 million. The proposed share capital reduction will take effect the day after the resolution is passed, with the return of capital scheduled to be paid to directly to shareholders on 13th June 2018.
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said:
"We are pleased to announce our financial results and a NAV of USD 300 million. These results are an important milestone for ENBD REIT, having recently passed 12 months since listing on Nasdaq Dubai. In that time, we have acquired 4 new income generating assets, delivering 46% portfolio growth and achieving a Loan-to-Value ratio of 36%. Additionally, with 11% occupancy growth, we have doubled our Weighted Average Unexpired Lease Term to 3.5 years. The ENBD REIT team continues to strive to deliver superior returns to investors, in what is proving to be a challenging market."
Portfolio occupancy growth in the final quarter saw an increase of 2.6%, with total portfolio occupancy reaching 89.2%, driven mainly by improved occupancy at Burj Daman. The alternative portion of the portfolio – which includes student accommodation, education and retail assets – is currently 100% occupied, in line with ENBD REIT’s acquisition strategy to acquire fully occupied income producing assets. Occupancies within the office and residential portfolios currently stand at 88% and 86% respectively.
The audited financial statements will be available to view on Nasdaq Dubai and on the ENBD REIT website at www.enbdreit.com/reit
